Export Friendly Scheme On The Anvil.

New Delhi: Walking on the talk that he delivered in his budget speech, Finance Minister Pranab Mukherjee’s plan of refunding the service tax on the inputs of the exported items might very soon see the light of the day.

With the Finance Ministry gearing up to unveil a new scheme that will reimburse service tax to exporters  on the lines of duty drawback scheme, companies like Tata Group, Reliance Industries, Bajaj Auto and Welspun will now save their share of service tax that currently is imposed on the inputs of the exported items.

Under the duty drawback scheme, an exporter’s excise duty of the inputs used in the exported good is refunded. Touted to be industry friendly, the rates under this new scheme will be determined by the expert panel as per the lines of its predecessor.

Earlier, on several occasions the Exporters’ body, Federation of Indian Exporters (FIEO) had showed its reservation over the existing cumbersome process pertaining to service tax and had asked the government to clear the bottlenecks.

Clearly perceived to be industry specific, this new scheme will also bring cheers for the small time exporters. But for the returns on the exports to rise, an effective roll out and implementation is what is required and the Finance Ministry is currently mulling on this.

Source : zeenews.india.com